A Green Bond is a type of bond where the funds raised are used exclusively for environmentally friendly and sustainable projects.
Green Bonds are issued by governments, corporations, or financial institutions to finance projects that have positive environmental impact.
These may include renewable energy, clean transportation, pollution control, water management, and climate change initiatives.
In India, green bond issuance and disclosure norms are regulated by the Securities and Exchange Board of India.
"A company issues bonds to finance a solar power plant—this is a green bond."